The World Bank (WB) on Wednesday has banned three international companies including leading European-based medical device company Eckert & Ziegler BEBIG for fraudulence and collusive practices in Bangladesh, India and Timor-Leste.
As per WB move, Eckert & Ziegler BEBIG, RKD Construction Pvt. Ltd. (RKD), and Egis International Indonesia is ineligible to participate in WB financed projects for 15 months to two years.
WB has announced the debarment of Eckert & Ziegler for two years in connection with fraudulent and collusive practices under the Health Sector Development programme in Bangladesh, says BSS citing a release.
According to the Bank's findings, Eckert & Ziegler BEBIG has engaged in fraudulent practices by misrepresenting the commission amounts it had agreed to pay to its local agent under the WB financed programme.
The Bank also found that the company and its local agent engaged in collusive practices by arranging with procurement officials to artificially inflate the prices of the company's bids in relation to these contracts.
The release also said the companies have acknowledged responsibility of the fraudulence practices and agreed to meet specified corporate compliance conditions for release from debarment.
As a condition for release from sanction under the terms of the settlement agreement, the companies commit to develop integrity compliance programmes consistent with the principles set out in the World Bank Group Integrity Compliance Guidelines.
The companies also commit to continue to fully cooperate with the World Bank Group Integrity Vice Presidency.